Assume that a company makes only one product, maintains no beginning or ending inventories, and uses a standard costing system. The standard cost card for that product is shown below: Direct materials Direct labor Fixed manufacturing overhead Standard Quantity or Hours 3 pounds 2 hours 2 hours Standard Price or Rate $13.00 per pound $16.00 per hour $ 8.00 per hour Standard Cost $39.00 $32.00 $16.00 The company purchased 22,000 pounds of direct materials from its supplier at a cost of $12.50 per pound. The company used 22,000 pounds of direct material to start and complete 7,800 units of finished goods during the period. Its direct laborers worked 16,000 hours and were paid a total of $248,000. Based on this information, the total increase recorded in the Work in Process account related to fixed manufacturing overhead would be: Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials price variance is $400 unfavorable, and (3) the materials spending variance is $200 unfavorable. Given these assumptions, which of the following statements is true? Multiple Choice The materials quantity variance must be $600 favorable. The materials quantity variance must be $200 unfavorable. The materials quantity variance must be $200 favorable. O The materials quantity variance must be $600 unfavorable